\"Quantitative easing\" basically means \"print more money\", that much is true. It's normally used in a deflationary environment, which the vid suggests isn't so bad because \"prices go down when people have less money\". We're probably not in a deflationary environment right now, though we've been on the verge several times recently.
IMO the vid misses a key point about a deflationary environment: when prices are going down, people try to delay purchases because a dollar tomorrow is worth more than a dollar today. The stronger the deflation, the stronger the effect. This is a very bad thing -- if people stop spending money, people stop earning money, and there's a downward spiral. The \"velocity of money\" drops significantly, essentially choking the economy. In a deflationary environment, printing more money to trigger inflation is a \"better than the alternative\" response.
Posted: Thu Dec 02, 2010 8:25 pm
by Neo
lol... so combine the video with what you said and you got an awesome combination. I tried watching the other so-called \"xtranormal\" videos and none of them were as good as this one. I think that xtranormal person is still naive. -.-